Algerian Arms Deal Brings Russia $7.5 billion, Gas Market Leverage
June 7/13: RIA Novosti offers an update on Russian criminal prosecution of people involved in the canceled Algerian MiG-29 sale. there have been consequences, but…. it’s Russia.
The Moscow city court just handed down a 4-year suspended sentence to former Rezon director general Mikael Kazaryan. Rezon is charged with selling MiG outdated equipment, amd covering it up with forged certificates and tags. In earlier proceedings, Aviaremsnab head Musail Ismailov had 2 years added to his 5.5 year sentence, giving him 7.5 years for ripping off the Polish and Algerian air forces. May 2012 saw another 3 people convicted, with one sentenced to 5 years in prison, and the others fined.
On the other hand, this is Russia. MiG’s former First Deputy Director General Sergei Tsivilev, and his deputy Oleg Fadeyev, both escaped sentencing in December 2012, on grounds that the 6-year statute of limitations for their offense had expired. If you start too late, yes, that happens. RIA Novosti.
A February 2006 report noted that a $4 billion arms sale was brewing between Algeria and Russia involving fighter aircraft, tanks, and air defense systems, with the possibility of additional equipment. Those options came through the following month, as a high-level Russian delegation in Algeria closed up to $7.5 billion worth of arms contracts. The Algerian package remains post-Soviet Russia’s largest single arms deal. As an instructive comparison, annual Russian weapons export orders from all customers were just $5-6 billion per year in 2004 and 2005.
Reuters South Africa quoted Rosoboronexport chief Sergei Chemezov as saying that “Practically all types of arms which we have are included, anti-missile systems, aviation, sea and land technology.” The actual contents of that deal were murky, though DID offers triangulation among several sources to help sort out the confusion. A number of these deals have evolved over time, and other public-source information has helped to sharpen the picture a bit. The subsequent crash of Algeria’s MiG-29 deal, and its ripple effects, are also discussed.
The Algerian Package: What’s the Big Deal?
Structuring the Deal: Anatomy of a Euro-Squeeze
Contracts and Key Events
2010 – 2013
2006 – 2009
Appendix A: Algeria’s Appetite for Advanced Arms
Appendix B: Russia’s Arms Industry Woes
Appendix C: Additional Readings & Sources
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